Pension Panic

73 per cent of Gen Z’s concerned for their pension

Gen Z employees are the most concerned about their retirement of any generation in the workforce, according to a national survey of 2,000 working adults by Resource Solutions.

Despite being furthest away from retirement age, as many as 72 per cent of Gen Zs said they were worried they may not be able to stop working at the State Pension age due to financial hardship – followed closely by Millennials (70 per cent).

Sharing these fears are Boomers (born 1946-1964), of which nearly half (44 per cent) said they worried about having to continue working past retirement age in order to sustain themselves or any dependents financially.

The study also revealed that Boomers are the most likely to factor in a company’s pension contribution level when looking at job opportunities, with 41 per cent claiming this to be very important in their decision-making process – compared to only 1 in 5 Gen Zs (19 per cent).

Kristen Buckheit, managing director EMEA at Resource Solutions, said: “Our data highlights a concerning discrepancy between how concerned younger generations are about retirement and how much attention they are paying to their employers’ pension contribution levels. While 3 per cent is the legal minimum in the UK, many employers offer a higher contribution – which can make a significant difference at the end of an employee’s working life. In times of economic difficulty, there is a tendency to focus on the immediate rather than the long-term – but everyone including Gen Zs should be thinking ahead and financially assessing roles based on more than just monthly earnings.

“The year 2024 is set to be an important one for pensions, with State Pensions increasing by 8.5 per cent from April among other changes – but it’s unclear whether this alone will be enough to alleviate feelings of anxiety around retirement currently being felt across all spectres of society,” said Buckheit. “The Great Unretirement, which last year saw older generations feeling the pinch return to the workforce to make ends meet or support their families, is unlikely to draw to a close this year.”

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